AM Report: Libya Crushes Protesters

2/22/2011 9:24AM

Libyan leader Moammar Gadhafi ordered his military to violently fight back against protesters. The News Hub panel also discusses how oil prices have spiked as a result of ongoing Middle East unrest. Plus, NBA star Carmelo Anthony is now a NY Knick.

This transcript has been automatically generated and may not be 100% accurate.

... portal was ... like ... the ... outlook was for fell off the morning of chaos and bloodshed intensified in Libya and across ... the Middle East welcome to the New Saab I'm Kelly Evans ... joined Ansett this morning the Dow Jones ... managing editor Neil Lipschutz Barron's dot com dot Senator Bob O'Brien Bob Neill ... good morning to both ... appreciate you being with us Jerry Sithe joins us at from Washington Washington Bureau Chief Jerry you know what is the way this is our is is reports are coming back to Washington about the situation in Libya and in particular ... well it seems to be spinning out of control not just a Moammar Gadhafi its leader but of the US is well it looks as if ... the eastern half of Libya ... is pretty much out of control of the central government be anti Ghadafi forces ... seem to have taken hold of and does use the big city in the east ... it's always been an independent place in colonial times or re and its own government essentially ... and so there's a kind of a force that pulls it apart from Tripoli the Libyan capital where ... the market the People's Court ... and so what's happening as the eastern part of Libya seemed to be pulling away ... out of control the central government ... on and that's going to create the potential for motorway support Libya ... it's in critically important in this is an oil producing country obviously ... and also a country that doesn't seem to be ... under the AFL's that just about anybody still in awe of you out ... but what's interesting is that stock markets have largely taken a lease from well ever since December when a revolution first read in Tunisia in stride and now I wonder that starting to change the way we see oil prices reactor to weaken and stock markets market and the others clearly suddenly a flight to safety ... taking place you seen the dollar spiking up ... you've seen gold prices moving up over the last six days only ... apparently down today ... so clearly ... the market is finally reacting a bit but they're reacting to more than the individual ... events in Egypt ... and Libya ... is the prospect of ... this kind of I wanted to say ... could be exported to two neighbouring country ... Austin's what will happen what he needed correction anyway I think we'd really get one of the stock markets ... so this is all likely and logical reason ... and is always a worst-case scenario ... we don't know if we'll get there will be is the first place it's a significant well produced with that will be stopped early to go offline ... but the worst-case scenario of course the Saudi Arabia ... nothing seems to have dented Saudi Arabia yet ... but you know Bahrain ... Libya and you've got no worries and Jerry on the air and as I get ... the suspects to countries like Libya not all of yours when we're talking about Egypt which did a lot of journalists and we could see images ... but what is the latest on the situation in Libya in places like Saudi Arabia were as Neil mentioned people especially in the markets are really concerned about what might happen ... well a steady rain to the sporting King Abdullah barely has returned to Saudi Arabia get away for three months like getting medical care for spear and then in Morocco ... so that may be a sign that he's he's arrived to take more control over how ... the unrest as being invalid as to a recent study or if you get the problem there the here there ... is that Saudi Arabia's most of our brain where you have a ... Shiite majority that has become very rest about to see as the country in some turmoil ... this is significant Shiite population in ... eastern Saudi Arabia where the oil fields are not so it's been the official concern but I think it'll be seen as a sign of reassurance inside Saudi Arabian outside the picking is back ... in the royal family is full of though it did so that's what's going on that read I think that the danger live your right now frankly is that you could actually have ... severe bloodshed take place in the the ... the Ghadafi regime has shown that has to do whatever it takes including unleashing its own Air Force ... one its own people to try to maintain control but deftly a different picture than you saw an Egypt ... where the present Mubarak pushed it for awhile but didn't push him look too far back when the sun happening with the ... confined to the Abaxia second you're willing to migrate all vignette ... the Fed to get quick and deeper look at what what might be happening in markets morning call ... combining welcome that has been a lot of ... eyes we mention of Pressman's in Zagreb and it's what he does is talking about oil prices are up there were up about ten dollars earlier and not ... quite as much throw more than six dollars crude above ninety cents a barrel stock futures are down began stock futures were down about a hundred thirty ... early this morning yet again only about seventy ... two market is already having taken this information and content of ... the oil market short term the world is well supplied ... it's obviously ... these people calling for quite awhile to Roth of issues and other oil producing countries ... and things get worse right now supply demand especially in the US would he obviously overshot put on them to be a ... big oil producers in on what can happen so crude futures jump up ... but is ... the mortgage on a real concern is that ... they're going to be a big disruption is it really has to spike in prices at the ... Artigas your heating costs goal ... it's a short-term thing the marbled is absorbed edible move on ... that the agricultural ... commodities ... they've obviously been running very overheated levels what direction they are likely to take his chances this all plays out ... well I ... don't know what health and will affect them directly I mean even on the upswing given rising we'll probably continue on that line ... and increased about stocks for second is actually things going on in the stock market was too ill market ... retailers are reporting today Wal-Mart was the home Depot without me to hold onto ... the market might start looking at their own business ... the meister to that is on again as long as this ... the disruption in oil markets doesn't appear to be ... a major long-term things a short-term spike ... that maybe I can see that the Pope right um not aware that goes beyond what was sown porn already in New York that nearly three and a half a dollar a gallon gasoline ... it's obviously a tax on the economy economy still fragile in the last ... of Mucha Western world so we know the deal the Entous markets and in ... all things are not stock it ... was one of the architecture of the nation's debt rating and a government shutdown in yet that prospect looks increasingly likely as March for its deadline approaches ... during the Russian dairy sheep relate to bring him back into this conversation Jerry what is the latest are hearing I around the capital it seems as though both Republicans and Democrats frankly ... are looking at this is an opportunity some even potentially to see happen ... well perhaps I feel the situation though is that if there's a ... the continuing resolution stopgap spending measure that keeps the government funded until March for ... at that point the governor either shuts down or Congress to something continue the funding ... House passed its own version of a ... bus stop in other stopgap measure that gives the fund into the rest of fiscal year last week but the Senate ... which is run by the Democrats is clearly not going along with that of these cuts are too deep ... and so there's a showdown coming in there's only a few days before March fourth Congress will actually be back in town unable to deal with this ... what happened over the weekend was that the Republicans to pull back a little bit from the precipice they start talking about ... or maybe we can do it two weeks every nation that allows time for the Senate ... to deal with the spending that may show that the House passed ... and if that's the case then you will have to shut down prices ... I think there's lot of tough talk but in reality if Republicans don't wanna go there ... the Democrats might wanna push it but how much are they wanna explore the areas in Asia and Paul Ryan and see what a nice vocal I've got to Republicans that it's bought it we talked a lot of the past year about uncertainty from Washington how much that was weighing on the market last year ... now I can live with uncertainty two weeks away and again it doesn't really seem to be getting people's attention and you think that's a change well I'm not sure it will be once again we got ... the script like situations that the market typically ... Lockheed's with ... I'm not sure if this time ... it's going to do when you know it's going to exactly right because I think we have ... some real problems that need to be addressed by Washington ... but overall I think the market ... is going to be happier if the two parties capable of reaching algorithmic seen this before what is really mean I mean if the government shuts down what is the actual implication I mean what happens is there ... and then we had a report ... from last Journal recently about how ... the Obama administration sought to look into the ... nooks and crannies and the details of what happens and ... you go back to ninety five and ... you know it was a mess and and and the main thing was people got upset Republican Party suffered ... a ninety five likely why they ... would wanna have a repeat now ... I don't think also ... from the market's perspective to I think it is a general positive feeling here ... because there is so much more of that Republican House influence ... about the budget debate ... in other words an Obama has moved a little bit ... of from where it was and is in in before the congressional actions so I think that you know ... to Bob's point ... you know nobody Polly wants a shutdown that the market still ... probably mind brinkmanship if it's about bringing in spending but not about a race that Jerry that's what you can think of the markets correctly interpreted with the most likely course of action here ... I think so I think the markets can be a lot more worried about the next big event which would be the time the debt ceiling of the federal government has the race in April or May I think a government shutdown looks like Altix ... that shoot with real bullets for the Market mass coming later this spring I Jerry Sithe in Washington Chief Jerry thanks alot ... only God with us and that it literally at these huge birds news this morning added the Carmelo Anthony's confirm that the best will start the Denver Nuggets be headed ... to the New York Knicks the deal apparently involving Denver ... and at Minnesota out of the dollar in generating lots of excitement here in the New York area ... the Los investible sounds very long time ... and just fell in love before beating myself the sixty nine so the next which with the iconic team that won ... the championship ... but it's been a very long time in now maybe it's itself Beach Norfolk ... I don't think it's quite heavy debt ... and its management is in such disarray for the last year nine years ... and I'm not sure one deal isn't can be the chores all their problems ... that stem from the perspective of somebody ... who's not New York's ... staff ... they bought me a anticipated actually about designed with accurate the four pm rat ... didn't that one Domus that Wall Street Journal and Kelly Evans have agreed that ... this